Expirationless Options (XPOs)- The Next Big Thing Message Board

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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing

XPO 141.09

+0.7%

Dec 24 12:59 PM EST

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To: Tech Master who wrote (30)	7/9/2005 10:28:56 AM
From: VLD3	Read Replies (1) of 60

No, I just thought more bang for less margin, since I am assuming that you would use the underlying stock you own to meet the margin requirement (should still be 1:1, equity share:call option). If you sell out-of-the-money strikes, you have to use more stock to hedge more options (to reach the same dollar value received, because the out-of-the-money is less valuable). In the end, I guess its a matter of taste for risk.

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